We’re still in Q1. There are still some people sticking with their New Year’s Resolutions, most are still excited about what the new year has to bring, and pretty much all of them are still mistakenly writing “2021” fairly often. The beginning of the year is the best...
Clergy
What Does Clergy Dual Tax Status Mean?
Under federal law, most ministers have dual tax status. Dual tax status means a minister is an employee of the church for federal income tax purposes, and self-employed for Social Security and Medicare taxes. For ministers, wages are reported in two different ways:...
Limitations on the Housing Allowance
After reading about the Housing or Parsonage / Manse Allowance, you may be thinking, “if I designate my entire salary as a Housing Allowance, would it all be excluded from federal income taxes?” IRS has already addressed this by limiting the Allowance to the least of...